> HANJIN CRISIS: COMPANY FILES FOR BANKRUPTCY; CARGO DELIVERIES COULD TAKE WEEKS

HANJIN CRISIS: COMPANY FILES FOR BANKRUPTCY; CARGO DELIVERIES COULD TAKE WEEKS

Thursday, September 1, 2016

HANJIN CRISIS: company files for bankruptcy; cargo deliveries could take WEEKS

AUSTRALIAN ISSUES

We understand from a source within Hanjin that the company HQ sent a notice yesterday to local Australian branches that that company had filed for bankruptcy.

Customers were then notified.

At 14:41 Australian Eastern Standard Time yesterday, Hanjin pulled credit from Australian freight forwarders. It also demanded cash for delivery in a note to customers from the Import Documentation section at Hanjin Shipping.

Spelling, capitalisation and emphasis from the original email is reproduced here.

"Subject: hanjin credit customs

HANJIN SHIPPING

Has ceased credit terms

If you are a credit customer you will now have to pay for your EDO

Hi Just received this note from Head Office

1. General Issues

A. Withdraw credit facility for both CIF & FOB shipment immediately

– all cargo delivery must be carried out against cash payment only."

A local Australian Hanjin clerk added "you [forwarders] have to arrange payment we do not have credit customers anymore."

SHIPS UNDERWAY UNLIKELY TO ARRIVE AS SCHEDULED

One freight forwarder asked Hanjin Australia if this would cause any problems with cargo shipments that are already underway. Hanjin replied: "No I do not think so. The ships are still coming".

However, based on available data and expert opinion, it is now very unlikely that ships will stick to their original schedules – in fact, one vessel, the Hanjin California (IMO 9631101), has already gone off schedule.

According to Automatic Identification System tracking data, the Hanjin California is approximately 14 nautical miles (26km) off the coast of Sydney. It is not underway, not moored and not moving. However, this vessel was due to call at Port Botany early this morning.

We understand that there are rumours that the port or terminal turned the vessel away. These rumours appear to be incorrect as both the terminal operator Hutchison and the port authority, NSW Ports, have both told Lloyd's List Australia that the ship did not turn up of its own volition. Hutchison told Lloyd's List Australia that Hanjin's ship agent canceled the pre-booked pilot.

Marika Calfas, CEO of NSW Ports, gave Lloyd's List Australia the following statement: "We are aware of the Hanjin situation. We expected the Hanjin California at 04:00 this morning but it did not arrive. We were advised by Hanjin that it would not arrive but we were not advised why."

Evidence, gathered from Automatic Identification System telemetry, is mounting that it is possible that Hanjin vessels have been instructed to stay at sea.

Hanjin Saijo is anchored 13nm (24km) off the coast at Port Hedland;

Hanjin Port Kamsar is anchored 10nm (19km) off the coast at Mackay;

Hanjin Milano is underway in the Solomon Sea, east of Papua New Guinea bound for Melbourne on Sept 6 but is only travelling at a speed of 1.5 knots; we understand this vessel has been removed from 1-Stop;

Hanjin Balikpapan is underway east south east of Palau, Papua New Guinea destination Newcastle but only at a speed of 1.5 knots;

Hanjin Isabel is underway 367nm (680km) south-east-by-south off Christmas Island at a speed of 1.3 knots;

Hanjin Aqua is moored at Brisbane;

Hanjin Hinase is moored at Townsville;

And, as mentioned above, Hanjin California declined to take up its scheduled slot at Botany this morning and is now stationery 14nm (26km) off the coast at Sydney.